Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 28 (2017GS)

Sponsor

Rep. Duckworth, S.

Final action

Governor Signed 3/17/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the circumstances when a monthly long-term disability benefit shall be reduced or reimbursed;
• requires an eligible employee that is under a total disability to inform the Public Employees' Insurance Program of certain information;
• provides penalties if an eligible employee knowingly misrepresents or fails to disclose certain information; and
• makes technical changes.

Every vote on this bill

Bill text

PUBLIC EMPLOYEES LONG-TERM DISABILITY ACT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Susan Duckworth
Senate Sponsor: 
 Karen Mayne
LONG TITLE
Committee Note:
The Retirement and Independent Entities Interim Committee recommended this bill.
General Description:
This bill modifies the Public Employees' Long-Term Disability Act by amending
provisions relating to long-term disability benefits. 
Highlighted Provisions:
This bill:
▸ modifies the circumstances when a monthly long-term disability benefit shall be
reduced or reimbursed;
▸ requires an eligible employee that is under a total disability to inform the Public
Employees' Insurance Program of certain information;
▸ provides penalties if an eligible employee knowingly misrepresents or fails to
disclose certain information; and
▸ makes technical changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-21-402
, as last amended by Laws of Utah 2013, Chapter 316
ENACTS:
49-21-409
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-21-402
 is amended to read:
49-21-402.
Reduction or reimbursement of benefit -- Circumstances --
Application for other benefits required.
(1) A monthly disability benefit may be terminated unless:
(a) the eligible employee is under the ongoing care and treatment of a physician other
than the eligible employee; and
(b) the eligible employee provides the information and documentation requested by the
office.
(2) The monthly disability benefit shall be reduced or reimbursed by any amount
received by, or payable to, the eligible employee from the following sources for the same
period of time during which the eligible employee is entitled to receive a monthly disability
benefit:
(a) Social Security disability benefits, including all benefits received by the eligible
employee, the eligible employee's spouse, and the eligible employee's children as determined
by the Social Security Administration;
(b) workers' compensation indemnity benefits;
(c) any money received by judgment, legal action, or settlement from a third party
liable to the employee for the disability;
(d) unemployment compensation benefits;
(e) automobile no-fault, medical payments, or similar insurance payments;
(f) any money received by a judgment, settlement, or other payment as a result of a
claim against an employer; [
and
]
(g) any payments made for sick leave, annual leave, or similar payments[
.
]
; and
(h) compensation received for employment, including self-employment, except for
eligible amounts from approved rehabilitative employment in accordance with Section
49-21-406
.
(3) The monthly disability benefit shall be reduced by any amount in excess of
one-third of the eligible employee's regular monthly salary received by, or payable to, the
eligible employee from the following sources for the same period of time during which the
eligible employee is entitled to receive a monthly disability benefit:
(a) any retirement payment earned through or provided by public or private
employment; and
(b) any disability benefit resulting from the disability for which benefits are being
received under this chapter.
(4) After the date of disability, cost-of-living increases to any of the benefits listed in
Subsection (2) or (3) may not be considered in calculating a reduction to the monthly disability
benefit.
(5) Any amounts payable to the eligible employee from one or more of the sources
under Subsection (2) are considered as amounts received whether or not the amounts were
actually received by the eligible employee.
(6) (a) An eligible employee shall first apply for all disability benefits from
governmental entities under Subsection (2) to which the eligible employee is or may be
entitled, and provide to the office evidence of the applications.
(b) If the eligible employee fails to make application under this Subsection (6), the
monthly disability benefit shall be suspended.
(7) During a period of total disability, an eligible employee has an affirmative duty to
keep the program informed regarding:
(a) the award or receipt of an amount from a source that could result in the monthly
disability benefit being reduced or reimbursed under this section within 10 days of the award or
receipt of the amount; and
(b) any employment, including self-employment, of the eligible employee and the
compensation for that employment within 10 days of beginning the employment or a material
change in the compensation from that employment.
(8) The program shall use commercially reasonable means to collect any amounts of
overpayments and reimbursements.
Section 2. Section 
49-21-409
 is enacted to read:
 49-21-409.
Violations -- Penalties. 
In addition to other remedies provided in this title, if an eligible employee knowingly
makes a material misrepresentation to the program or knowingly fails to disclose the award or
receipt of amounts to the program as required under Section 
49-21-402
, the program may:
(1) suspend the monthly disability benefits to the eligible employee;
(2) terminate all monthly disability benefits to the eligible employee;
(3) terminate or cancel any other benefits provided under this title during a period of
total disability; or
(4) require the eligible employee to repay the amount of any overpayment resulting
from the violation to the program.
Section 3. 
Effective date.
This bill takes effect on July 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel